Florida Accountant Admits Guilt in Conservation Easement Scam

A Florida accountant pleaded guilty on Aug. 23 to filing a bogus tax return that claimed a fraudulent charitable contribution relating to the donation of a conservation easement over land, the Justice Department said.

Boca Raton resident Randall Lenz, a CPA and attorney with more than 30 years of experience handling tax matters, is facing a three-year prison sentence for filing a false tax return.

From approximately 2015 through 2019, Lenz marketed to his clients illegal tax shelters developed and promoted by other individuals, and in return, he received a commission of 12% of the money his clients paid for their tax shelters. In total, Lenz received more than $700,000 in such commissions, according to court documents.

The tax shelters enabled high-income taxpayers to claim inflated charitable contribution deductions in connection with the purported donation of a conservation easement over land. The operators of the tax shelters created a limited liability company and then acquired land, or an entity that owned land, through the LLC. The promoters then sold units in funds operated by the LLCs to wealthy clients. In exchange for those purchases, the clients were given documentation and tax forms purporting to justify tax deductions in amounts four to four and a half times the amount of money the clients paid for their units.

Lenz admitted that he knew the tax shelters did not entitle him to a tax deduction, but he still purchased units for himself for tax years 2018 and 2019. As a result, he was able to claim false charitable deductions of approximately $100,000 on his tax returns for each of those years.

In addition to possible jail time, Lenz faces a period of supervised release, restitution, and monetary penalties.